Question on Canada and taxes

thegowzer · #1 10-13-2006, 12:45 AM

Ok so i know if you're playing in the states, legally you should be declaring your winnings and pay taxes.

What about in canada?

monkeyman · #2 10-13-2006, 12:55 AM

if you are playing poker professionally and it is your main source of income, you need to pay tax. if not, you don't.

blueodum · #3 10-13-2006, 12:59 AM

It doesn't even need to be your main source of income. If you are playing in a systematic way, the goal of which is to earn money, it's taxable.

thegowzer · #4 10-13-2006, 01:02 AM

what if its for recreation? Seems like a gray area.

ianlippert · #5 10-13-2006, 01:06 AM

probably the best canadian tax thread

Canadian tax thread

blueodum · #6 10-13-2006, 01:20 AM

If you truly are a recreational player (and you have to prove that you are if you are audited and decide to appeal in court), you don't have to declare poker winnings.

Peter666 · #7 10-13-2006, 01:25 AM

Has any Canadian ever been taken to tax court over poker winnings?

sammyG · #8 10-13-2006, 01:29 AM

As far as I know in my experience, gambler's earnings in Canada are generally left alone as long as they can show some earnings from another source of income that can be legitimately claimed as a job. Canada is definetly the place to be at a time like this.

blueodum · #9 10-13-2006, 01:34 AM

Has any Canadian ever been taken to tax court over poker winnings?

So far they've been left alone. But if you make your living playing poker in Canada and you aren't declaring the income, you are breaking the law.

AAxxCracker · #10 10-13-2006, 02:49 AM

[ QUOTE ]
Has any Canadian ever been taken to tax court over poker winnings?

So far they've been left alone. But if you make your living playing poker in Canada and you aren't declaring the income, you are breaking the law.

[/ QUOTE ]

Do you think that someone making a basic living on $25,000 a year playing poker could be the first one made an example of in tax court when there are undoubtedly pros and semi-pros with a job and pensioners and some university students making a lot more regularly? I would think they'd go for a big fish first and then a few hundred would rush to tax amnesty (aka voluntary disclosure) to pay back-taxes and interest but without penalties or prosecution.